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| GartnerG2 Report Shows In-Store Purchases to Drop by 10 Percent During Holiday Season as Consumers Move Online |
| Events of September 11 Force Retailers to Rethink Crisis Planning Strategies |
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STAMFORD, CONN., November 13, 2001 - With the economy teetering toward recession and exacerbated by the events of September 11, retailers are facing an uncertain holiday season. According to a new report entitled "Crisis Planning Strategies for Retailers - Now!" from GartnerG2, a research service from Gartner, Inc. (NYSE: IT and ITB), in-store purchases will drop by as much as 10 percent as consumers flock to the relative safety of shopping online.
As more consumers turn to their computers to shop this year, GartnerG2 projects worldwide online holiday shopping to surpass $25 billion this year, a 39 percent increase from the same period last year. "Recent events have forced consumers to rethink their shopping habits and travel plans more than ever before," said Geri Spieler, research director for GartnerG2. "Many people will shop online from home if they choose not to travel during the holiday season. The plans retailers make now to deal with these changing shopping habits will help them better manage the demands of forecasting, spending and fulfillment." As fewer people travel and instead spend their money on general merchandise and apparel, GartnerG2 predicts that economic activity for retail will begin to recover in the second quarter of 2002. The report states that quarterly retail growth rates for the United States will range from between 1.5 percent in the first quarter to 4 percent in the fourth quarter of 2002. Additionally, the real gross domestic product (GDP) in 2002 is forecast to grow 1.6 percent for the year. Retailers must take a different approach in times of weak consumer confidence. To that end, GartnerG2 recommends that retailers take the following steps:
"Our research points to several business strategies that retailers would never have considered in the past but are now critical to their survival," said Spieler. "Stockpiling inventory in the event of supply and delivery problems is a 180 degree turn from where we have been over the past several years." The findings represented in "Crisis Planning Strategies for Retailers - Now!" are based on a GartnerG2 consumer survey of a representative sample of 40,000 adults, aged 18 years and older. Additional data were gathered from major national retailers, suppliers and fulfillment providers. Statistics were obtained from the National Retail Federation, DRI-WEFA GDP Annual Growth Forecasts, Unity Marketing, Insider Marketing and the Business Travel Coalition. GartnerG2 is a new research service from Gartner that helps business strategists guide and grow their businesses. For more information on the report visit www.GartnerG2.com. About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.
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Contact: Mike McCabe Middleberg Euro 212-699-2752 mikem@middleberg.com |
Contact: Danielle Westling Gartner 203-316-6754 danielle.westling@gartner.com |
